Marketing Plan

Record Store Business Plan

Typical Target Customer

Mike is 21 years of age with some college education. He is a cultured student, but works too, so he has plenty of money for entertainment: particularly music, books, movies, and shows. Mike is an intelligent, open minded, and unique individual, not your ordinary Top 40 radio music purchaser. Primarily, Mike spends most of his free time listening to music and reading magazines to keep updated on the music he enjoys. Although music is a hobby for Mike, it is something he takes very seriously. He collects rarities not only for listening pleasure, but also for their collectability and will search everywhere to find exactly what he wants. Mike likes going to shows frequently, and the best way for him to find out about them is to pick up the local alternative newspaper or visit a record store that posts fliers for upcoming music events. Mike also likes to give his business to independently owned stores whenever possible due to the comfortable, personalized shopping experience. Occasionally, Mike logs on to a friend's or the school's computer to search the Internet for other specialty shops carrying the items he is interested in.

Reaching the Target Customer

—Advertising in weekly newspapers —Create mailing list for upcoming in-store appearances and periodic sales —Enter notices in computer networks —Place announcements in weekly newspapers —Possible free promotion in form of an article in the local daily paper

Marketing Budget Pre-Opening Promotion

—Flyer-full page and quarter page to scatter throughout key metro areas	$150
—Advertisement in weekly newspapers	$250-$500ea
—Grand Opening publicity from the Chicago Chamber of Commerce	$195
TOTAL	$900-1,300

Monthly Advertising

—Regular newsletters to mailing list detailing new release listening parties, sale items, and upcoming in-store appearances	$50
—Advertising in weekly newspapers every other month or less	$175
TOTAL	$225 and up

Competition

The northern Chicago area has four active record stores that will compete with Hidden Treasure Records.

1. Replay Records: Although not located in Northbrook, its inventory competes most directly with Hidden Treasure's. Recently, it has suffered from high employee turnover. Replay also has high prices, and its quantity of current releases has been lacking, primarily because of a decrease in business due to its relocation. Hidden Treasure will differ from Replay by being in a highly visible location, offering a wider selection at lower prices, and having a friendly staff and atmosphere.
2. Cool Beats: This record store has been a Northbrook staple for a number of years. It offers a wide selection of fairly priced items. It also contains listening stations for people to sit down and sample the music before purchasing. The main difference between Cool Beats and Hidden Treasure is that they do not specialize in the same product lines. Also, their interior space is limited. Cool Beats has recently moved from Schilling Park Avenue to First Street. This would make Hidden Treasure the sole record store on Schilling Park.
3. Surrounded by Sound: This is also a very popular store in the northern Chicago area. Its basic problem is that it lacks a proficient sales staff. It also has a crowded, unorganized interior. Hidden Treasure will take particular pride in its customer friendly environment and knowledgeable staff. Hidden Treasure Records also plans to be very competitive with prices on items that are also carried by Surrounded by Sound. They, however, also cater to a different music consumer than Hidden Treasure—they do not carry the off-the-wall, hard-to-find, trendsetting products that Hidden Treasure will specialize in.
4. Harmony House: This is a very convenient store for the one-stop shopper. They carry all types of music, along with having a Ticketmaster machine. Harmony House also has a computerized special ordering system, which is very helpful. A major fault of Harmony House is that they have high prices. One major benefit for Hidden Treasure is that they are not located in the downtown Northbrook area. Also, Hidden Treasure will offer much greater personalized service, and have an efficient special ordering system of its own that should satisfy the customer with the most particular of tastes.